Sidbi: PRESENTED BY: Prabhdeep Singh Rahul

SIDBI
PRESENTED BY : Prabhdeep Singh

Rahul
INTRODUCTION
Small industries development bank of India (SIDBI), set up on
April 2, 1990 under an act of Indian parliament, is the principal
financial institution for the promotion, financing and development
of the micro, small and medium enterprise (MSME) sector and for
co-ordination of the functions of the institutions engaged in similar
activities.
It was incorporated initially as a wholly owned subsidiary of

Industrial development bank of India.
Beginning as a refinancing agency to banks and state level

financial institutions for their credit to small industries, it has
expanded its activities, including direct credit to the SME
through 100 branches in all major industrial clusters in India.
Recently it has opened seven branches launched as micro

finance branches, aimed especially at dispensing loans up to
Rs. 5 lakh.
It is an apex body and nodal agency for formulating

coordination and monitoring the policies and programmes for
promotion and development of small scale industries.
BUSINESS DOMAIN OF SIDBI

The business domain of SIDBI consists of small scale industrial
units, which contribute significantly to the national economy in

terms of production, employment and exports.
Small scale industries are the industrial units in which the
investment in plant and machinery does not exceed Rs.10 million .
About 3.1 million such units, employing 17.2 million persons
account for a share of 36 per cent of India's exports and 40 per cent
of industrial manufacture.
In addition, sidbi's assistance flows to the transport, health care and
tourism sectors and also to the professional and self-employed
persons setting up small-sized professional ventures.
ACHIEVEMENTS
SIDBI retained its position in the top 30 development banks of the world in the latest
ranking of the banker, London.
As per the may 2001 issue of the banker, London, sidbi ranked 25th both in terms of
capital and assets.
Credit guarantee fund trust for micro and small enterprises popularly known as CGTMSE
is widely being used by many PSU banks and private sector banks to fund MSME sector.
During the year 2002-03 the aggregate sanction and disbursements of sidbi amounted to
Rs. 10904crore and Rs. 6789crore respectively.
MISSION & VISION
Mission:
To empower the micro, small and medium enterprises (MSME) sector
with a view to contributing to the process of economic growth,
employment generation and balanced regional development
Vision:
To emerge as a single window for meeting the financial and
developmental needs of the MSME sector to make it strong, vibrant
and globally competitive, to position SIDBI brand as the preferred
and customer - friendly institution and for enhancement of share holder wealth and highest corporate values through modern
technology platform
OBJECTIVES
Four basic objectives are set out in the SIDBI charter. They are:
Financing
Promotion
Development
Co-ordination
for orderly growth of industry in the small scale sector. The Charter
has provided SIDBI considerable flexibility in adopting appropriate
operational strategies to meet these objectives.
PRODUCTS AND SERVICES
Direct finance.
Bills finance
Refinance
International finance
Promotional & development activities.
Fixed deposit scheme
Technology upgradation & modernization fund scheme {TDMF}
Venture capital fund scheme
Seed money schemes
National equity fund scheme
DIRECT FINANCE
Since its beginning, SIDBI had been providing refinance to state level
finance corporations / state industrial development corporations / banks

etc., Against their loans granted to small scale units.
Sidbis direct finance schemes are:

Scheme for expansion / diversification of small scale units.
Scheme for specialized marketing agencies.
Scheme for ancilaring / subcontract units.
Scheme for existing export oriented units(eous) to enable them to
acquire iso 9000 series certification.
BILLS FINANCE SCHEMES

Bills finance scheme involves provision of medium and short-term finance
for the benefit of the small-scale sector.
Bills finance seeks to provide finance, to manufacturers of indigenous
machinery, capital equipment, components sub-assemblies etc, based on

compliance to the various eligibility criteria, norms etc as applicable to the
respective schemes.
To be eligible under the various bills schemes, one of the parties to the
transactions to the scheme has to be an industrial unit in the small-scale

sector within the meaning of section 2(h) of the sidbi act, 1989.
REFINANCE SCHEMES
Refinance scheme is introduced for catering to the need of funds of primary
lending institutes {PLI} for financing small scale sector.
Under the scheme, sidbi grants refinance against term loans granted by the
eligible plis to industrial concerns for setting up industrial projects in the small
scale sector as also for their expansion / modernization / diversification.
Schemes of re-finance assistance:

Scheme for SC-ST & physically handicraft persons
Composite loan scheme
Equipment refinance schemes.
Schemes for small road transport operators.
Special assistance to ex-servicemen.
INTERNATIONAL FINANCE SCHEMES

The main objective of the various international finance schemes is to enable
small-scale industries to raise finance at internationally competitive rates to
fulfill their export commitments.
The financial assistance is being offered in us dollars and euro currencies.

Assistance in rupees is also provided to the needy borrowers.
The international finance is available from pre-shipment & post shipment credit.
Need based limit, depending on the normal trade terms and credit period given
to overseas buyers by exporters not exceeding 180 days.
PROMOTIONAL AND DEVELOPMENT

ACTIVITIES
As an apex financial institution for promotion, financing and
development of industry in the small scale sector, SIDBI meets the varied
developmental needs of the indian SSI sector by its wide-ranging
promotional and developmental (P&D) activities.
The activities are as follows:

Entrepreneurship development programmes.
Management development programmes.
Technology upgradation programmes.
FIXED DEPOSIT SCHEME

The Interest Rate Structure for SIDBI Fixed Deposit Scheme of SIDBI are
as under:
Time period
Revised Annual
Interest Rate %p.a.
* w.e.fAugust 10,
2009
For Senior
Citizens
Interest (% p.a.)
7.0
0 months - 12
months
6.50
14 months - 36
months
7.00
37 months 60
months
7.50
7.5
8.0
TECHNOLOGY UPGRADATION &

MODERNIZATION FUND SCHEME
This fund was setup in the year 1996 by the SIDBI with an initial capital
of 200 million.
It was setup for the purpose of encouraging the existing small scale
industrial units to modernize production facilities and adopt improved

and updated technology for strengthening export capabilities.
For availing benefits under this scheme the unit have to prepare an
estimate for modernization & submit it to sidbi.
The sanction of funds is made depending upon the estimate submitted.
VENTURE CAPITAL FUND SCHEME

SIDBI is participating in the venture capital fund set by public
sector institutions as well as private companies to the extent of

Rs,50,00,000 of total capital of the fund required.
The fund should be dedicated to financing small industry preferably

the most risky one.
SEED MONEY SCHEMES

One of the constraints faced by entrepreneurs is the lack of own
resources to promote the minimum promoter contribution.
Hence, sidbi introduced seed money scheme for the benefit of

entrepreneurs.
Seed money is available through dic { direct industry centre } to
those entrepreneur who are technically qualified but lack of own

capital.
NATIONAL EQUITY FUND SCHEME

In order to provide equity type assistance, SIDBI is operation a
national equity fund scheme.
The equity capital loan to the extent of 2.5lakh is sanctioned to

each project provided the protect qualities under this scheme.
THANK
YOU

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SIDBI

PRESENTED BY : Prabhdeep Singh

It was incorporated initially as a wholly owned subsidiary of

Beginning as a refinancing agency to banks and state level

Recently it has opened seven branches launched as micro

It is an apex body and nodal agency for formulating

BUSINESS DOMAIN OF SIDBI

units, which contribute significantly to the national economy in

MISSION & VISION

PRODUCTS AND SERVICES

finance corporations / state industrial development corporations / banks

Sidbis direct finance schemes are:

BILLS FINANCE SCHEMES

Bills finance seeks to provide finance, to manufacturers of indigenous

machinery, capital equipment, components sub-assemblies etc, based on

transactions to the scheme has to be an industrial unit in the small-scale

Schemes of re-finance assistance:

INTERNATIONAL FINANCE SCHEMES

The financial assistance is being offered in us dollars and euro currencies.

PROMOTIONAL AND DEVELOPMENT

The activities are as follows:

FIXED DEPOSIT SCHEME

TECHNOLOGY UPGRADATION &

industrial units to modernize production facilities and adopt improved

The sanction of funds is made depending upon the estimate submitted.

VENTURE CAPITAL FUND SCHEME

sector institutions as well as private companies to the extent of

The fund should be dedicated to financing small industry preferably

SEED MONEY SCHEMES

Hence, sidbi introduced seed money scheme for the benefit of

Seed money is available through dic { direct industry centre } to

those entrepreneur who are technically qualified but lack of own

NATIONAL EQUITY FUND SCHEME

The equity capital loan to the extent of 2.5lakh is sanctioned to

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